Jerome Powell says Gen Z without technical skills is crushed in this economy

Speaking in Rod Island this week at an event hosted by the Grand Provence Chamber of Commerce, Powell described what he called an unusual economy “low rental, low”. Companies Do not expand salary companiesBut they also do not cut the employees in large numbers. Instead, many stop new appointments while waiting to find out how customs tariffs, immigration policy and other transformations are run.

“We all see data – it is only difficult for people to enter the workforce.” Powell said.

However, he stressed that the market is not difficult for everyone. If you get out of school with technological skills, you will be fine – “wonderful”, even.

“If you do not have these skills, though, you may have increasingly left less attractive work options,” said Powell.

An educational gap

Connecting Powell the problem with a plateau in American educational achievement. Throughout most of the twentieth century, more Americans come out of secondary and college schools, giving them the ability to adapt to new technology. But this progress slowed in the 1970s, even as the digital economy accelerates.

“I am surprised how the educational achievement type has been completed,” said Powell.

Harvard’s economists’ work was cited Claudia Golden and Lawrence Katz, whose book The race between education and technology He argues that inequality expands when education fails to keep pace with innovation. He stated that the technological change, when associated with education, has raised productivity and income, since the industrial revolution.

The Federal Reserve Chair indicated that for decades, American workers have been able to ride every new technological wave because the country was expanding access to education.

“The United States was the first country to obtain a blind secondary education between the sexes,” said Powell. “The United States had a rapid technological innovation for a century, and also refused to equal, because people were going out and their educational ability … giving them the ability to benefit from advanced technology.”

He suggested that this dynamic collapsed, leaving today’s graduates more at risk.

Artificial intelligence economy

Increase in Artificial intelligence investment I only sharpen the gap. Powell said: “The economy (he) is growing, but not quickly … except in the field of building artificial intelligence, which is going well (in) many parts of the country.”

That caused a strong request on Skills related to artificial intelligence While leaving other areas of employment, it stopped, a fact Powell stressed that the Federal Reserve has no ability to change.

He said: “Our tools are on demand – less than interest rates, and higher interest rates.” When there are “structural changes” for the economy, there is not much that the Federal Reserve can do.

“We cannot reform the education system,” he said. “This is for legislators and the private sector. But it is very important for the future of our economy.”

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